Egypt: will the relief rally last? | beyondbrics

Investors have responded with relief to the Egyptian presidential poll result which saw the Muslim Brotherhood candidate Mohamed Mursi confirmed as the country’s first democratically-elected leader.

The Egyptian stock index was up over 7 per cent on Monday, following Sunday’s 3 per cent gain, while benchmark bond yields plunged nearly 40 points. There seemed to be almost as much joy in the market as in Tahrir Square.

But it might not last long. Egypt remains at the mercy of political conflict between the old regime and the representatives of the would-be new order.

* username: rupertbu